Breaking the Chains: States Move to Limit Noncompete Agreements for Healthcare Professionals Amid FTC Challenges

A growing trend among lawmakers in multiple states is to prohibit or restrict noncompete agreements for specific healthcare professionals and doctors. This action comes in response to concerns that the Federal Trade Commission’s (FTC) effort to ban noncompete clauses nationwide may face obstacles. On April 23, the FTC announced a final rule that would prohibit noncompete provisions preventing workers from changing jobs within the same industry, a move supported by the Biden administration but facing legal challenges.

In reaction to this development, Maryland Governor Wes Moore signed bipartisan legislation (HB 1388) into law just two days later. This legislation bans noncompete agreements for healthcare professionals in the state, a decision that reflects growing attention to the potential negative impacts of such agreements on healthcare workers and the industry as a whole. The effort is part of a broader trend of state-level actions to address concerns about the use and enforcement of noncompete agreements in healthcare settings.